Bombay HC orders DSK to deposit 25% of dues with court's registry

The 25% amount, according to lawyers, works out to around Rs 50 crore. The DSK group has, in the past, conceded to a repayment liability of Rs 209 croreVishwas Kothari | TNN | December 01, 2017, 07:44 IST

PUNE: The Bombay high court on Thursday asked prominent developer D S Kulkarni to file an affidavit by Monday with an undertaking to deposit 25% of the depositors’ dues with the court’s registry in two weeks.

A failure of compliance will automatically lead to the vacation of the interim protection granted to Kulkarni, also known as DSK, and his wife, Hemanti, the court told his lawyers.

The 25% amount, according to lawyers, works out to around Rs 50 crore. The DSK group has, in the past, conceded to a repayment liability of Rs 209 crore.

Justice AS Gadkari of the high court was hearing the anticipatory bail plea of the builder and his wife in a case of cheating, criminal breach of trust and offences under Maharashtra Protection of Interest of Depositors (MPID) Act, which was lodged by one of the depositors on October 28.

A special MPID court in Pune had rejected the couple’s pre-arrest bail application on November 8, following which they moved the high court.

On November 10, the HC granted DSK and his wife an interim anticipatory bail. At the last hearing on November 23, Justice Gadkari had directed DSK to coordinate with the investigating officer (IO) and identify a list of properties, belonging to the DSK group, which can be sold to raise money to repay the depositors’ dues.

Lawyer Manoj S Mohite, who, along with senior counsel AP Mundargi, is appearing for DSK, told TOI on Thursday, “We submitted a list of six properties for sale to the IO and brought the same to the notice of the court. These properites are mortgaged with banks and we submitted to the court that their value was high enough to ensure repayment of depositors’ dues, even after clearing the mortgage from the sale proceeds.”

Mohite further added, “The court insisted the properties for sale ought to have been totally free of any encumbrance. We brought to the court’s notice that there were no properties free of encumbrances as most of the DSK projects are ongoing and that the amount of loan on these properties was much less than the value of properties. When the court appeared not inclined on accepting these submissions, we sought time for making a statement on affidavit.”

He said, after a short break, senior counsel Mundargi informed the court that the developer was willing to give an affidavit and the matter be posted for Monday.

Additional government pleader Vinod Chate, who is assisting the government pleader, Deepak Thakare, on behalf of the state, said, “The bench made it’s displeasure evident over the developer not coming up with properties having clear titles even after three weeks. We brought to the court’s notice that the six properties listed for sale had burden of loan from banks and financial institutions.”

Chate said, “The court then asked whether the developer was willing to make a statement on affidavit to commit a specific amount for deposit in the court’s registry, to show his bonafide. After a submission by DSK’s lawyer, the bench consented to letting the developer file an affidavit and posted the matter for Monday.”